Lord Ember Stone's Quest

The next time you open your credit card statement, take a closer look at the small insert titled “changes to your credit card agreement”.  You know the one I’m speaking about.  It’s that small, folded paper written in legalese that you promise to read some other time (but of course that time never comes) or you just discard it with the other “junk” inserts.

First and foremost you must understand that using your credit card after you’ve received this notification results in your automatic “agreement” to the new terms in the notice. To prevent these new terms from affecting your account you must stop using that credit card immediately or by the date given in the notification statement.

The most common modifications to credit card agreements include new APR’s (annual percentage rates),  new fees and/or changes to existing fees, or a change to the grace period on your account.  The grace period is the number of days during which any credit used for purchases may be repaid in full without incurring a finance charge.

Not knowing or not keeping track of the dollar amount limit on your card is another trap you should avoid.  Credit card issuers will allow you to charge a small amount over the limit set on your account.  However, don’t be surprised when you get hit with an “over limit fee”, usually around $35.00 or higher, on your next statement.  Also, be prepared for your APR to be increased if you go over your credit limit.

You’ll also trigger an increase to your interest rate if you miss your payment due date.  Some companies consider your payment late if not received by noon or 1 p.m. on the date due.  Along with the higher rate, you’ll also pay a “late fee” of $29 on up.  Be sure to use the company’s preprinted envelope when sending your payment.  These envelopes allow the pre-printed bar code to be scanned by the post office so that it can be delivered more efficiently.

If you’ve counted on those few extra days from the time you mail your check and the time the check clears your bank, beware!  Many credit card issuers have switched from the traditional method of processing checks to a new electronic process. This new system shaves off a day or more from the traditional method it normally takes for your check to clear by electronically debiting your account.

If you’re considering paying your credit card bills online, check to see if any additional fees will be charged for using this type of payment.  I recently received an e-mail message from one of my credit card companies announcing how easy it would be to make my payments online.  Included in fine print at the bottom of the e-mail was this note -  “A fee of up to $14.95 may be charged for this service and will be deducted from your checking account”.  Hmmm, spend 37 cents on postage and mail my payment five days before the due date or pay now and get charged an additional $14.95 fee?  I’ll bet you can guess which choice I made.

Taking the time to carefully read and understand your credit card agreement now will help you save money by avoiding unnecessary fees or climbing interest rates later down the road.

There has been a huge growth in the number of cold calls, and unsolicited offers that people receive on their home and business phones. The process can be very intrusive and frustrating and is the subject of a growing number of complaints. Many of these calls come from phone companies, especially mobile phone providers but they are also for new windows, for insurance and for credit among other things.

If you are offered credit over the phone, it can be quite tempting, especially if you have poor credit or have had difficulty in getting credit in the past. However, there are some risks involved and you should be careful. The primary concern with these types of calls is that at the end of the day, if you are the recipient of the call, you do not know who is calling you. Just because someone says they are from a respectable bank or credit card provider does not necessarily mean they are, and you should accordingly be cautious about what information you give out over the phone. Of course, if you have made the call, or have requested it from a reputable lender, then this will be far less of a concern.

Do not, under any circumstances, be pressured into giving out sensitive information over the phone or accepting credit if you are not comfortable doing so. If you do think you want to accept a phone offer for credit, then give out as little information as possible over the phone. They will probably need your address, but any other information can be sent to them through the post, in an application form. You should become very suspicious of anyone who calls you and starts asking for your payment details, bank account number or any other similar information. If they are a genuine company, then they should be more than happy to send you an application form through the post.

Also, make sure you ask who you are speaking to and which company they represent. Ask them for their website address so that you can look up the company on line. Also, when the application form does arrive by post, read it carefully and satisfy yourself not only that the offer is one you would like to accept, but also that the company is one that you would like to be dealing with. Finally, look at the address carefully and make sure that it all appears above board.